1. Field of the Invention
The present invention relates generally to computerized systems for pricing advertising time, and more particularly to a computerized system for determining demand and pricing of advertising time in the television and radio media industry.
2. Description of the Prior Art
The pricing of advertising spots, termed “avails”, on radio and television is based upon many factors including demand, the availability of limited avail inventory, and the differing ratings of various shows. However, all of these factors, as well as others, are constantly changing, making accurate and reliable pricing decisions a difficult task. Additionally, because advertising avails are purchased months in advance of actual broadcast, the pricing is primarily based upon projections of what the future demand and ratings for particular avails will be. Furthermore, legal restrictions against collusion prevent broadcasters from revealing their advertising rates to each other, such that price competition, and therefore pricing uncertainty, exists in the industry.
Of course, the broadcast and advertising industry have developed methods for determining pricing. However, much of these methods are fairly arbitrary and rely on individual recollection and usage of prior season rates, with a good deal of haggling between the advertising agency media buyers that place the ads and the broadcast media.
There is therefore a need for a systematic approach that utilizes the many variables along with validated presumptions to provide a more reliable method for projecting demand and providing a pricing range that is realistic and can generally assure that the broadcast medium will operate profitably. The present invention utilizes a computerized database and analysis system to provide such demand projections and pricing guidelines.